Bullabulling rejects Norton takeover
PERTH (miningweekly.com) – The directors of junior gold miner Bullabulling Gold on Wednesday urged shareholders to reject a takeover offer from fellow-listed Norton Gold Fields, calling the offer inadequate and opportunistic.
“Your directors believe that the offer is fundamentally opportunistic and timed to suit Norton’s best interests without reference to the true value of the company or to the best interests of Bullabulling Gold shareholders,” the company said in a statement.
“The offer does not reflect the inherent value of Bullabulling Gold, including the 100% owned Bullabulling gold project, which hosts independently assessed Joint Ore Resource Committee-compliant mineral resources of 3.75-million ounces of gold.”
In April, Norton launched an all-cash takeover offer for Bullabulling, offering shareholders 7c a share for each share held. The offer represented a 30% premium to the company’ share price on April 17, and a 32% premium to the three-month volume-weighted average price.
Norton CEO Dianmin Chen said at the time that Bullabulling’s namesake project, in Western Australia, had significant funding challenges, which a small company such as Bullabulling would have ongoing difficulties managing.
The project is expected to cost about A$300-million to bring to production.
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